Paul Boateng: Enclosed below are the latest figures reported by Departments on their Private Finance Initiative (PFI) activities. The submission of this information is in accordance with Departments' obligation to disclose PFI information to Parliament on a biannual basis.
	Table 1 shows the estimated private sector investment in public services resulting from signed PFI contracts over the period 2004–05 to 2006–07.
	Table 2 shows the estimated total capital value of PFI contracts that are currently at the Preferred Bidder stage of procurement. Tables 1 and 2 are both presented on a departmental basis.
	Table 3 shows a forecast of the estimated payments for services flowing from signed PFI projects. It should be noted that procuring authorities only pay when they receive the high quality services specified in PFI contracts. If such services are not received then deductions can be made from anticipated payments. This table is presented in aggregate form and covers the period 2004–05 to 2029–30.
	
		Table 1: Departmental Estimate of Capital Spending by the Private Sector (signed deals)1, 2
		
			 Department Projections (£ millions) 2004–05 2005–06 2006–07 
		
		
			 Education and Skills3, 4 87 4 1 
			 Health 556 689 476 
			 Transport5, 6 1,450 1,497 1,411 
			 Office of the Deputy Prime Minister 54 55 101 
			 Home Office 104 6 0 
			 Constitutional Affairs 33 29 8 
			 Defence 865 458 304 
			 Foreign and Commonwealth Office 6 5 5 
			 Trade and Industry 5 5 2 
			 Environment, Food and Rural Affairs 69 46 24 
			 Work and Pensions 41 44 34 
			 Scotland 172 78 7 
			 Wales 58 18 0 
			 Northern Ireland Executive 2 4 16 
			 Chancellor's Departments 46 38 34 
			 Cabinet Office 6 1 0 
			 Culture, Media and Sport 5 13 9 
			 Total 3,559 2,990 2,432 
		
	
	1Investment in assets scored on the public sector balance sheet also scores as public sector net investment. Figures are for investment under PFI-type contracts only.
	2PFI activity in local authority projects is included under the sponsoring central government department.
	3Excludes private finance activity in educational institutions classified to the private sector.
	4Figures reported for non-IT projects relate to the amount of PFI credits awarded.
	5Includes estimates of the capital expenditure for the London Underground Limited (LUL) Public Private Partnership PFI Contracts in the years that investments are expected to take place.
	6Excludes estimates of capital expenditure on the Channel Tunnel Rail Link (CTRL).
	
		Table 2: Estimated Aggregated Capital Value of Projects at Preferred Bidder Stage
		
			 Department Projections (£ millions) 2004–05 2005–06 2006–07 
		
		
			 Education and Skills 7 870 0 0 
			 Health 1,613 1,200 0 
			 Transport 28 0 0 
			 Office of the Deputy Prime Minister 35 60 55 
			 Home Office 91 26 0 
			 Constitutional Affairs 0 0 0 
			 Defence 378 106 198 
			 Foreign and Commonwealth Office 0 0 0 
			 Trade and Industry 0 0 0 
			 Environment, Food and Rural Affairs 0 0 0 
			 Work and Pensions 0 0 0 
			 Scotland 183 203 224 
			 Wales 5 57 0 
			 Northern Ireland Executive 50 32 20 
			 Chancellor's Departments 0 0 0 
			 Cabinet Office 0 0 0 
			 Culture, Media and Sport 46 33 11 
			 Total 3,299 1,717 508 
		
	
	7Figures reported relate to the amount of PFI credits awarded.
	
		Table 3: Estimated Payments under PFI Contracts—December 2004 (signed deals) 8 
		
			 Year Projections(£ billions) Year Projections (£ billions) 
		
		
			 2004–05 5.7 2017–18 5.9 
			 2005–06 6.2 2018–19 3.9 
			 2006–07 6.6 2019–20 3.9 
			 2007–08 6.6 2020–21 4.0 
			 2008–09 6.4 2021–22 3.7 
			 2009–10 6.5 2022–23 3.8 
			 2010–11 6.4 2023–24 3.8 
			 2011–12 6.3 2024–25 3.7 
			 2012–13 6.3 2025–26 3.7 
			 2013–14 6.3 2026–27 3.4 
			 2014–15 6.2 2027–28 3.2 
			 2015–16 6.3 2028–29 2.9 
			 2016–17 6.3 2029–30 2.6 
		
	
	8The figures between 2004–05 and 2017–18 include estimated payments for the LUL PPP contracts. These contracts contain periodic reviews every 7.5 years and therefore the service payments are not fixed after 2009–10.

Nick Raynsford: I have today presented the provisional local government finance settlement for 2005–06. Included in the announcement was the distributable amount of national non-domestic rates in England for 2005–06 to be redistributed to local authorities, which will be £18.000 billion.
	
		Calculation of Distributable Amount for 2005–06 £ million
		
			  2001–02   Outturn 2002–03   Outturn 2003–04   Provisional   outturn 2004–05   Provisional   outturn 2005–06   Estimated   contribution 
		
		
			 1.   Income from local lists 
			Multiplier (p) 43.0 43.7 44.4 45.6 41.5 
			Gross rate yield in respect of current year 16,952 17,195 17,322 17,880 19,468 
			  (i)   Reliefs 
			(a)   Net Transitional Relief -493 -182 -119 -98 0 
			(b)   Empty or partly occupied properties -1,049 -1,144 -1,228 -1,244 -1,355 
			(c)   Charitable -583 -602 -616 -636 -692 
			(d)   Rural shops and post offices -5 -6 -6 -6 -7 
			(e)   Community amateur sports clubs — — — -4 -5 
			(f)   Former agricultural premises 0 0 0 -1 -1 
			(g)   Discretionary -43 -42 -39 -38 -41 
			Net rate yield in respect of current year after reliefs 14,777 15,220 15,315 15,853 17,368 
			  (ii)   Collection costs and other reductions to contributions 
			(a)   Costs of collection -84 -84 -84 -84 -84 
			(b)   Losses on collection -95 -106 -88 -114 -124 
			(c)   City of London offset -7 -7 -7 0 0 
			Total contribution in respect of current year 14,592 15,024 15,136 15,655 17,160 
			  (iii)   Prior year adjustments 
			(a)   Interest on repayments -70 -59 -78 -40 -31 
			(b)   Repayments -270 -479 -774 -448 -345 
			Net rate yield from local lists 14,252 14,485 14,284 15,167 16,784 
			 2.   Income from Central list 
			  Net central list yield 1,048 1,044 1,029 1,037 1,114 
			 3.   Income from the former Crown list 
			  Contributions in lieu of rates 12 8 10 10 10 
			  Total yield 15,312 15,537 15,323 16,214 17,908 
			 4.   Exchequer Contributions 
			  Exchequer contribution towards transitional relief 262 41 111 59 0 
			  Total NNDR pool payments (= 1+2+3+4) 15,574 15,578 15,434 16,273 17,908 
			 5.   Adjustments 
			  Surplus brought forward -305 133 -915 -1,081 193 
			  Combined total 15,270 15,711 14,519 15,193 18,100 
			  Distributable amount 15,136 16,626 15,600 15,000 
			  Surplus carried forward 133 -915 -1,081 193 
		
	
	Notes to the table:
	The above calculation involves estimating several figures that are inherently difficult to forecast accurately, such as the gross rate yield and the prior year adjustments. The resulting figure of £18.100 billion has therefore been rounded to £18.000 billion exactly to avoid spurious accuracy.
	For 2001–02, 2002–03 and 2003–04, the amounts shown are generally those reported on the outturn (NNDR3) returns, with those for 2003–04 being regarded as provisional in advance of the receipt of audited returns. For 2004–05, the amounts shown are the provisional outturn for the year based upon authorities' provisional contributions to the non-domestic rating pool, as reported on NNDR1 returns. For 2005–06 figures, the estimates are based on:
	1.   Item 1: The gross rate yield represents the estimated effective total rateable value of non-domestic hereditaments on local rating lists multiplied by the small business non-domestic rating multiplier of 41.5p. The supplement of 0.7p that is also applied to businesses paying for the new small business rate relief is not included, and neither is the small business rate relief included within the reliefs at item l(i). This reflects the fact that the income from the supplement is intended to equal the cost of the relief nationally, resulting in a zero net effect upon the Distributable Amount.
	2.   Item 1(i)(a): The cost of the transitional reliefs in 2004–05 is estimated to be zero, to reflect the fact the scheme is designed to be self-financing, through phasing in reductions to rate bills.
	3.   Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. The 2005–06 figure includes an allowance to reflect the increase in the gross rate yield.
	4.   Item 1(i)(c): Charitable rate relief. The 2005–06 figure includes an allowance to reflect the increase in the gross rate yield.
	5.   Item 1(i)(d): Rural Shops and Post Office relief. Figures include mandatory relief for general stores and post offices under the Local Government and Rating Act 1997. The 2005–06 figure includes an allowance to reflect the increase in the gross rate yield.
	6.   Item 1(i)(e): Community Amateur Sports Clubs (CASCs). This is mandatory rate relief for sports clubs registered with the Inland Revenue as Community Amateur Sports Clubs under Section 64 of the Local Government Act 2003, which came into effect on 1 April 2004. The 2005–06 figure includes an allowance to reflect the increase in the gross rate yield.
	7.   Item 1(i)(f): Discretionary relief granted to charities, non-profit making organisations and for other reasons including discretionary relief for village shops and post offices under the Local Government and Rating Act 1997. The 2005–06 figure includes an allowance to reflect the increase in the gross rate yield.
	8.   Item 1(ii)(a) and (b): The allowances for the costs and losses incurred by authorities in collecting non-domestic rates from ratepayers.
	9.   Item 1(ii)(c): City Offset—the amount which the City of London is not required to pay into the non-domestic rating pool. It has been set to zero for 2004–05 onwards.
	10. Item 1(iii): Net adjustment in respect of appeals and other amendments to the rating list affecting liability for previous years rates settled in that year: comprising repayments and associated interest payments.
	11. Item 2: the rateable value of non-domestic hereditaments on the central rating list multiplied by the multiplier, less the net effect of transitional arrangements, and adjusted for appeals and other changes in respect of previous years.
	12. Item 3: Almost all properties previously included in the Crown List are included in the local list figures at item 1.
	13. Item 4: the contribution from central government to offset the amount of the Secretary of State's estimate of income foregone as a result of transitional arrangements is assumed to be zero for 2005–06, given the self-financing nature of the transitional relief scheme.

Nick Raynsford: The Government are today announcing the allocation to administering authorities of £1.715 billion for the Supporting People programme in 2005–06. These grants are awarded to authorities to enable them to provide housing related services to over 1.2 million vulnerable people in our society.
	The Supporting People programme was successfully launched in April 2003. Since then authorities have made good progress in managing the programme but there is work still to do. Findings from an independent review, inspections by the Audit Commission, and other research work have shown that there are considerable opportunities for authorities to make efficiency savings in their programme and that some services are not delivering the quality of support that clients deserve.
	We are addressing these concerns by requiring authorities to complete reviews of individual services by April 2006 and ensure that these are value for money, good quality and strategically relevant. In partnership with local stakeholders, authorities are developing five-year strategies for their programmes and these will examine critically the services delivered and focus them on local need and strategic priorities.
	Additionally, we are providing help and advice through capacity building programmes, and monitoring and support to authorities and providers. This includes projects to develop and disseminate best practice, a benchmarking programme, web-based support through hub services, and support to authorities struggling with their administration of the programme. We will also continue to work with authorities and providers to ensure that administration of the programme is effective and does not create unnecessary burdens.
	As a preventative programme, Supporting People contributes to a range of key Government targets and objectives. The Office of the Deputy Prime Minister will be working closely with colleagues across Government to ensure that the Supporting People programme is better integrated with other support packages.
	Throughout 2005–06, we will be developing the monitoring arrangements for the programme including measuring performance against three key Supporting People performance indicators. We will use this data to establish baseline performance and will then look to authorities to deliver continued improvement in outcomes over time.
	Early next year we will consult on the revised needs based distribution formula which will provide the basis for allocating Supporting People grant in the future. In the long run this could give rise to significant changes in current pattern of allocations between authorities and I recognise this cannot be achieved quickly. We have previously announced that under the Spending Review 2004 settlement the funding for Supporting People in 2006–07 and 2007–08 will be around £1.7 billion. To provide some further assurance to authorities about the pace of change I have decided that no authority should face a reduction of funding of more than 5 per cent. or an increase of more than 10 per cent. in either of these years.
	This Government's on-going commitment to the Supporting People programme and our continued support to authorities and other stakeholders in the delivery of the programme will ensure the continued improvement in value for money and better use of resources in 2005–06 and beyond.
	The Office of the Deputy Prime Minister is also beginning today a consultation on the grant conditions for Supporting People in 2005–06, which we are proposing to keep broadly the same as 2004–05. The consultation ends on 11 February 2005. We are writing to local authorities to inform them of their allocations.

Defra 2004 Report

John Hutton: The next meeting of the Employment, Social Policy, Health and Consumer Affairs Council will be on 6 and 7 December. Items on   the agenda relating to health will be covered on 6 December.
	Items for discussion are: a co-ordinated approach to combat HIV/AIDS in the European Union and its neighbourhood; European Commission proposals for a regulation of the European Parliament and of the Council on medicinal products for paediatric use; and the proposal for a regulation of the European Parliament and of the Council on nutrition and health claims made on foods.
	I will attend for the United Kingdom.
	Health Ministers will have a public debate on HIV/AIDS, where they will be asked to focus on next steps for both European Community and national level action.
	This will be followed by a first council discussion of the European Commission proposal on paediatric medicines, which aims to encourage the development of medicines for children. There will be a presentation by the European Commission, followed by interventions from some member states.
	There will be an exchange of views on the proposal to regulate health and nutritional claims on food labelling. Discussion will be structured around the Dutch presidency questions on the key issue of nutrient profiling, the proposed method to identify foods or categories of foods which will be permitted to make claims.
	Ministers will be asked to adopt the draft council conclusions on a European response to emerging zoonotic diseases. The UK can agree to adopt these conclusions as currently drafted.
	Under any other business, the Dutch presidency will report on progress made to establish the council's public health working party meeting on a high official level, which had its first meeting on 23 November 2004.
	The European Commission will also present the interim report of the high level group on health care and medical services.
	At lunch on 6 December, Health Ministers will also discuss pandemic preparedness planning.

Autumn Performance Report 2004

Hazel Blears: I have today placed in the Library a copy of the Home Secretary's proposals for allocation of police grant for England and Wales in 2005–06. The Home Secretary and I intend to implement the proposals subject to consideration of any representations and to the approval of the House.
	This Government are continuing to deliver on law and order. Our programme of reform and improvement for the police service in England and Wales over the past four years has been matched by a significant increase in resources for policing. On a like for like basis, expenditure on policing supported by Government grant or spent centrally on services for the police has increased by 39 per cent. or over £3.0 billion between 2000–01 and 2005–06. This substantial increase has helped to both support the reform agenda and deliver the things that we all want to see. Crime is down and there are record numbers of police officers, police staff and community support officers.
	We have recently set out our programme for further change. On 9 November we published "Building Communities, Beating Crime: A Better Police Service for the 21st Century". This is an ambitious agenda for sustainable improvement in policing. We are aiming forthe spread of neighbourhood policing, with improved responsiveness and customer service; further modernisation of the police workforce to ensure that the service is fully equipped and able to deliver these changes; and greater involvement of communities and citizens in determining how their communities are policed. We are committed to working with the service, police authorities and their partner agencies in delivering safer communities across our country.
	The national policing plan for 2005–08 was published on 24 November. This too puts the law abiding citizen at the heart of policing, with the police working in partnership to create and maintain secure and confident communities. Our key priorities are to reduce overall crime; provide a citizen-focused police service; take action with partners to increase sanction detection rates; reduce people's concerns about crime and anti-social behaviour; combat serious and organised crime and counter the increased risk from terrorism.
	The police funding settlement will support the priorities outlined in the Plan. The police will receive sufficient resources to enable them to provide an efficient and effective service to the public. We have listened very carefully to the concerns raised by the policing community. The Association of Police Authorities and the Association of Chief Police Officers made available their own surveys of projected cost increases for 2005–06. These have been taken into account in determining Government increases in grant.
	Total provision for policing to be supported by grant in 2005–06 will be £11,833 million. Central Government revenue grant funding direct to police forces will increase by 5.1 per cent. This includes an increase of 4.8 per cent. in total formula grant and more than £760 million in specific grants. Taken together with the increase in central funding for police communications, IT and support services, this provides an increase in supported spending of 6.7 per cent. overall.
	The overall 6.7 per cent. increase or £746 million includes police formula grants, specific grants, capital related grants, direct Home Office spending and the formula spending on which revenue support grant is based. It also includes counter-terrorism and security, and international and organised crime funding.
	For formula grant, the Home Secretary and I have added £194 million in Home Office Police Grant to last year's general police grant provision. There has also been an increase of £156 million in Revenue Support Grant and National Non Domestic Rates from ODPM and the Welsh Assembly. This will give police authorities maximum scope to determine their own spending and help authorities manage down financial pressures next year. This extra money has enabled us to increase police formula grant by 4.8 per cent. in 2005–06.
	Last year we took the exceptional decision to provide a broadly standard rate increase in general grants in recognition of the financial pressures on all authorities. This year we will again provide a minimum increase for all police authorities but we have been able to return to a better reflection of the funding formula. The settlement provides a funding floor of 3.75 per cent. This will benefit   26 police authorities who under application of the formula without damping would have received £103.6 million less. Increases for other authorities, above the funding floor, range up to nearly 6.9 per cent. This approach balances financial protection for all police authorities with distribution of additional resources to areas where need is greater. Above-floor increases will help authorities facing rapid population growth and those that have faced ceiling restrictions in the past.
	The minimum increase of 3.75 per cent. in general grants is substantially above police pay increases and inflation. Police Authorities, the Association of Chief Police Officers and the Association of Police Authorities have impressed upon me the particular pressures they face in the coming year. I am responding to their concerns with what is one of the highest police settlements in recent years. To help meet those pressures, particularly on police pensions, police grant overall and the floor level include a special 0.25 per cent uplift, around £20m that would not otherwise have been provided. I do not intend to claw back the £20m in future years, but equally we will not take it into account when calculating grant increases in 2006–2007. The effect will be that grant increases in 2006–2007 will be calculated as increases on a baseline from which the 0.25 per cent. uplift has been removed.
	Pressures on policing change over time and the way in which we assess police authorities' relative need for grant support has to develop. As the National Policing Plan 2005–08 explains, we are reviewing the formula that underpins police grant, in association with the service. We are examining the factors that drive demands on the police and will take account of those factors at local level which are known to affect levels of criminality. We will be updating the formula in the light of new data, and we are exploring the possibility of linking performance expectations and resource allocation and the extent to which specific grants can be incorporated in general grant. We are also supporting wider Government consultation on three-year rather than annual grant settlements and collaborating with the Lyons Review of Local Government funding.
	The settlement continues to take account of our commitment to improve efficiency and effectiveness in the police service. We expect, for the three years from   2005–06 to 2007–08, the Police Service to deliver efficiency gains of 3 per cent. per annum, half of which are to be cashable gains. Guidance on efficiency plans for 2005–06 has been issued this week.
	The Home Office, the Association of Chief Police Officers and the Association of Police Authorities are committed to working in partnership to deliver cumulative year on year improvements in the value for money to deliver the efficiency targets. Future police grant allocations will be considered in the light of police   authorities meeting the target for efficiency improvements.
	This is an excellent settlement. If police authorities deliver efficiency gains, and exercise judicious financial planning, there is no reason for police authorities to set excessive increases in police precepts on council tax next year. The Government's policy in relation to council tax increases of less than 5 per cent. has been clearly set out by my rt hon Friend the Deputy Prime Minister and my hon. Friend the Minister for local government.
	In this statement, I want to outline provision for support for the police service in England and Wales.
	The police grant settlement
	We propose to distribute the settlement as set out below. The table includes funding for both local and central spending.
	
		Table 1: Police funding settlement for 2005–06compared to 2004–05
		
			  2004–05 2005–06   Increase 
			  £m 1 £m 1 £m 1 % 
		
		
			 1. Direct funding for police authorities: 
			   Home Office Police Grant 4,380 4,574 194 4.4 
			   Revenue Support Grant/  Business Rates 2,889 3,045 156 5.4 
			   Total General Formula Grant 7,269 7,619 350 4.8 
			   Assumed Local Funding 2 1,699 1,753 54 3.2 
			   Total Formula Grant   Spending Provision 8,968 9,322 404 4.5 
			 Specific Grants for police   authorities 708 766 58 8.2 
			 2. Capital Grants & Support 355 358 3 0.8 
			 3. Central Spending 
			   Policing 3 491 653 162 33.0 
			   Crime Reduction 164 172 8 4.9 
			   Counter Terrorism, International and Organised Crime 4 401 512 111 27.7 
			 Grand Total 11,087 11,833 746 6.7 
		
	
	1Figures rounded to £ million.
	2Product of policing share of assumed national council tax.
	3The £162 millon increase represents mainly £65 million for the Bichard agenda; an extra £47 million for Airwave core charges; £23.5 million for Criminal Justice Systems (IT); £15 million for ANPR and £10 million for NAFIS.
	4Includes provision for NCS/NCIS (£257 million), Serious and Organised Crime Agency (£24 million) and counter terrorism.
	Police funding proposals within the Local Government finance system are being announced by the Minister for Local and Regional Government today, and by the Welsh Assembly Government.
	Provisional general policing grants (i.e. Home Office Police Grant, Revenue Support Grant and National Non Domestic Rates) for English & Welsh police authorities in 2005–06 compared with 2004–05 are given in Table 2.
	Amending Reports
	The Amending Report for 2003–04, to take account of changes to ONS population data, was set out in my written statement of 18 November. Amending the settlement requires 10 police authorities to pay back formula grant. We have therefore adjusted 2005–06 grants to ensure that any authority owing money under the Amending Report will be able to pay it back and still be left with at least the floor grant increase over 2004–05. The consultation period on the Amending Report 2003–04 will end on the same date as the consultation on the funding settlement proposals 2005–06 on 11 January 2005.
	Welsh police authorities
	The Home Secretary has for several years provided additional funding to ensure Welsh police authorities receive at least a minimum increase in grant in line with English authorities. This additional support (£14m) will continue in 2005–2006 and is included in Table 2.
	There are to be minor boundary changes affecting South Wales and Dyfed Powys, taking effect from 1 April 2005. These changes are not yet reflected in the figures in Table 2 but will be incorporated into the final Police Grant Report put to the House.
	Metropolitan Police funding
	Grant for the Metropolitan Police Authority will increase from £1,822 million to £1.928 billion, a cash increase of £106 million or 5.8 per cent. Including an   extra £4.2 million from the Amending Report for   2003–04, the cash increase is £110.2 million. As part of general grant, I have increased the formula provision for the Metropolitan Police national and capital city   functions by £10 million to £217 million. The Metropolitan Police will receive separately provision for counter-terrorism. The Metropolitan Police will also receive a range of specific grants including London Allowance payments (£34 million) and free officer travel (£3.0 million).
	Specific grants for police authorities
	In addition to increased general grants, police authorities will continue to receive extra funding through a range of specific grants for particular schemes. Targeted grants were introduced as a direct response to what the police service and the public told us they wanted. Specific grants enable us to target funds to the areas where they are particularly needed. We have again tried to minimise provision for specific grants next year to maximise general grants which may be spent at the discretion of police authorities. Total provision for specific grants in 2005–06 is £766 million.
	Specific grants for 2005–06 compared with 2004–05 are set out at Table 3.
	The main specific grants are:
	Crime Fighting Fund: £277 million will be made available to forces in 2005–06 to continue to support the costs of officers recruited through the Crime Fighting Fund. A further £8 million to cover pay inflation has been included within the general grant uplift. This Fund has been remarkably successful in helping the police service boost its strength which reached a record level of 139,728 in August 2004. Subject to forces maintaining their strength, we will continue to pay for the 9,650 police officers recruited through the scheme by a combination of specific and general grant.
	Counter Terrorism: As last year, we will continue to provide additional funding to the Police Service to enable it to respond to the increased threat from international terrorism. We will be providing the Metropolitan Police with some £61 million in 2005–06 for ring-fenced counter terrorism funding. Provincial forces in England and Wales will receive £35 million of revenue and £8 million of capital in 2005–06 for dedicated counter terrorism work. This will be allocated following full consultation with the Association of Chief Police Officers and individual forces. In total the Police Service of England and Wales (including the Metropolitan Police) will receive £96 million of revenue and £8 million of capital to enable it to counter the increased risk from international terrorism.
	Basic Command Unit (BCU) funds: £50 million will again be provided for BCUs. These are at the forefront of local policing. The grant is targeted towards forces with BCUs in high crime areas to help reduce crime in partnership with Crime and Disorder Reduction Partnerships. All forces in England & Wales receive a share of the grant. Next year will be the third year of the Fund. BCU Commanders will have discretion locally to pool their BCU allocations with the new Safer and Stronger Communities Fund if they wish.
	Special Priority Payments: The pay and conditions package agreed by the Police Negotiating Board in May 2002 introduced new elements into police pay such as payments for the most experienced officers who can demonstrate a high level of professional competence and extra rewards for officers in the most difficult and demanding posts. For 2005–06 I have again split the allocation. A further £9 million (making £18 million) has been included in general grant. £69 million will be available as a specific grant, an increase of £9 million over the provision for 2004–05.
	Community Support Officers (CSOs): CSOs free up police officer time, provide reassurance and have powers to deal with aspects of anti-social behaviour and low   level crime. For 2005–06, we have allocated £49.5 million for continuing support of CSOs recruited in the first three rounds from 2002 onwards. In addition to this, I announced on 24 November the introduction of a Neighbourhood Policing Fund which would provide initially £50 million to be spent on additional CSOs to bring us up to our target of 5,500 by 31 March 2005. We have allocated £13 million for the last quarter of this financial year and £37 million for continuation funding in 2005–06.
	Rural Policing Fund: £30 million is again provided for the particular needs of the 31 forces with the most widespread populations. There is no change to the formulae underpinning the fund.
	Airwave: Specific revenue grant for Airwave locally determined or 'menu' services will be made available to ensure that all forces will have received the sums originally promised when Airwave was first introduced. Payments have been made as Airwave became 'Ready for Service' in each force. Delays in rollout in some areas have meant that some forces have not yet obtained the full amount of originally promised funding. A final £17.3 million will be paid to 26 forces. Forces were notified of their allocations on 20 October.
	Street Crime Initiative: This was launched by the Prime Minister in April 2002 and the initiative successfully brought down levels of robbery by 24 per cent. in its first two years. There has been a further 15 per cent. reduction across England and Wales in the first quarter of 2004–05. The aim of the initiative was to bring down levels of robbery which had climbed steeply. We have achieved this aim. Funding was due to cease at the end of 2004–05, however we have retained a residual specific grant in 2005–06 of £6.5 million to ensure that the benefits of the initiative are not lost and that we retain our capability to tackle mobile phone theft and other robbery. This will be allocated to forces with the biggest challenges.
	Other specific grants
	We will make available funding for the following: 75 per cent. of the cost of the London and South East Allowances (£55 million).
	Funding support for the cost of free travel for Metropolitan and City of London officers (£3.2 million).
	DNA Expansion Programme. Approximately £46 million grants will be available to continue support for this and the successor Programme, the Forensic Integration Strategy (FIS). The DNA Expansion Programme has helped to demonstrate the value of the effective use of forensics and FIS will help to build on this.
	Police authority capital
	The Home Secretary and I intend to allocate provision of capital grant for 2005–06 later this month.
	Central spending on policing
	Central spending on policing will total £653 million. This includes funding for Airwave core charges, DNA, funding to develop the Bichard agenda, National Strategy for Police Information Systems, Criminal Justice System (IT), Police Information Technology Organisation, Centrex, the Independent Police Complaints Commission, Automatic Number Plate Recognition (ANPR) and National Automated Fingerprint Identification Service (NAFIS).
	Serious Organised Crime Agency
	We are also establishing the Serious Organised Crime Agency (SOCA) under the Serious Organised Crime and Police Bill recently introduced into Parliament. This agency will mean a step change in how we fight and defeat organised crime and the harm that is caused by it. The harm is currently estimated to be at least £20 billion a year to the United Kingdom. It will be a new organisation with a new operation that will bring together the functions of NCS and NCIS, which will be abolished as a result, as well as the serious drug trafficking and organised immigration crime aspects of Customs and the Immigration, Service. The costs of these constituencies will transfer into SOCA once it is established in April 2006. The cost met by the Home Office in 2005–06 is estimated at £24 million.
	Anti-Social Behaviour
	The Home Office is investing £75 million over 3 years to 2005–06, including £25 million next year, to deliver many of the commitments in the 'Together tackling anti-social behaviour' action plan.
	Safer and Stronger Communities Fund
	The newly created Safer and Stronger Communities Fund will bring together existing Home Office and ODPM funding streams. This Fund will total a minimum of £210 million in 2005–06, the Home Office contributing a minimum of £70 million resource and £20 million capital. The police service, subject to the agreement of other local partners, will be able to draw upon these funds to support local crime reduction initiatives.
	Asset Recovery Police Incentivisation scheme
	This scheme boosts asset recovery by giving forces a direct stake in the proceeds they generate from the work. The police service will receive one third of the total assets recovered over and above £40 million in 2004–05. This will increase to one half in 2005–06 with the maximum benefit available to the police of £65 million.
	Pensions
	We are addressing the financial pressures of police pensions. Overall costs have grown steadily in recent years but are expected to increase more sharply in 2005–06 because of historic recruitment patterns. From 2006–07 new arrangements for funding pensions will protect forces from extraordinary fluctuations. For 2005–06 the Home Secretary and I are providing some general relief.
	The Government Actuary's Department has used the most recent data from each force to calculate cost projections for 2005–06. These have been used to allocate pensions provision in the general grant formula. For the future, we are reviewing current arrangements to make pensions' costs more predictable and manageable. Police authorities would continue to meet police pensions, funded by employer and employee contributions and topped up by central Government if that were insufficient to meet the audited pensions bill.
	Conclusion
	We have listened carefully to all stakeholders in determining this settlement. We are continuing to provide the resources the police service need to work effectively and matching reform with investment. The proposals will ensure that all forces in England & Wales receive a fair share of resources. There is a guaranteed minimum increase in general grants for all police authorities but resources are also being targeted to where resources are needed most. The settlement will allow us to maintain record police officer numbers as well as expand the growing number of Community Support Officers, who are reassuring the public and helping to reduce crime and fear of crime.
	
		Table 2: Police grant allocations by English end Welsh police authority
		
			  2004–05   Allocation 1 2005–06   Allocation 1 Change 2003–04   Amending   Report 2005–06   Allocation   Net of AR Change 
			 Police Authority £m £m % Change £m Change £m % 
		
		
			 English Shire forces 
			 Avon & Somerset 162.2 170.1 4.85% 0.0 170.0 4.83% 
			 Bedfordshire 62.1 65.2 4.91% -0.2 65.0 4.58% 
			 Cambridgeshire 73.4 77.9 6.15% 0.1 78.1 6.35% 
			 Cheshire 107.2 111.3 3.75% 0.2 111.5 3.95% 
			 Cleveland 86.8 90.9 4.72% 0.2 91.1 4.92% 
			 Cumbria 59.6 62.1 4.13% -0.2 61.9 3.76% 
			 Derbyshire 101.2 105.0 3.75% 0.0 105.0 3.75% 
			 Devon & Cornwall 166.8 173.0 3.75% 0.0 173.0 3.75% 
			 Dorset 63.6 66.0 3.75% 0.0 66.0 3.75% 
			 Durham 84.2 87.8 4.30% -0.4 87.4 3.77% 
			 Essex 160.9 167.0 3.75% 0.0 167.0 3.75% 
			 Gloucestershire 58.9 61.1 3.77% 0.0 61.1 3.77% 
			 Hampshire 190.5 197.7 3.75% 0.0 197.7 3.75% 
			 Hertfordshire 104.8 108.8 3.77% 0.0 108.8 3.77% 
			 Humberside 114.6 118.9 3.75% 0.2 119.1 3.95% 
			 Kent 182.6 189.5 3.75% 0.0 189.5 3.75% 
			 Lancashire 182.9 190.8 4.33% 0.4 191.2 4.53% 
			 Leicestershire 102.0 107.8 5.66% -0.3 107.5 5.38% 
			 Lincolnshire 60.6 63.4 4.54% 0.0 63.4 4.54% 
			 Norfolk 82.2 85.9 4.51% -0.5 85.4 3.92% 
			 North Yorkshire 72.7 75.4 3.75% 0.0 75.4 3.75% 
			 Northamptonshire 64.3 67.8 5.49% 0.1 67.9 5.69% 
			 Nottinghamshire 127.6 133.4 4.52% -0.5 132.8 4.09% 
			 Staffordshire 109.2 113.3 3.75% 0.0 113.3 3.75% 
			 Suffolk 66.0 68.5 3.75% 0.0 68.5 3.75% 
			 Surrey 88.2 91.5 3.75% 0.0 91.5 3.75% 
			 Sussex 158.1 164.0 3.75% 0.0 164.0 3.75% 
			 Thames Valley 212.7 220.6 3.75% 0.0 220.6 3.75% 
			 Warwickshire 49.8 51.8 4.06% 0.0 51.8 4.06% 
			 West Mercia 107.7 111.8 3.75% 0.0 111.8 3.75% 
			 Wiltshire 60.6 62.9 3.91% -0.1 62.9 3.76% 
			 Shires Total 3,324.0 3,460.9 4.12% -1.0 3,459.9 4.09% 
			 English Metropolitan forces 
			 Greater Manchester 393.2 412.6 4.93% 0.8 413.4 5.13% 
			 Merseyside 248.4 257.7 3.75% 0.5 258.2 3.95% 
			 Northumbria 221.4 232.2 4.88% 0.4 232.6 5.09% 
			 South Yorkshire 178.0 185.7 4.33% -1.0 184.7 3.77% 
			 West Midlands 399.3 426.7 6.86% 0.8 427.5 7.07% 
			 West Yorkshire 298.9 313.7 4.96% 0.6 314.3 5.16% 
			 Mets Total 1,739.1 1,828.5 5.14% 2.2 1,830.7 5.27% 
			 London forces 
			 GLA—Police 1,822.0 1,928.0 5.82% 4.2 1,932.3 6.05% 
			 City of London 2 32.7 35.7 N/A N/A N/A N/A 
			 London Total 1,854.7 1,963.8 N/A N/A N/A N/A 
			 English Total 6,917.8 7,253.2 4.85% 5.4 7,258.6 4.85% 
			 Welsh forces 
			 Dyfed-Powys 3 50.3 52.2 3.75% 0.0 52.2 3.75% 
			 Gwent 3 71.1 74.1 4.17% -0.3 73.8 3.77% 
			 North Wales 3 75.2 78.3 4.06% -0.2 78.0 3.76% 
			 South Wales 3 168.2 174.5 3.75% 0.0 174.5 3.75% 
			 Welsh total 364.9 379.1 3.90% -0.5 378.6 3.76% 
			 TOTAL 7,282.7 7,632.3 4.80% 4.9 7,637.2 4.87% 
		
	
	Notes:
	1Rounded to the nearest £100,000. Grant as calculated under the Local Government Finance Report (England) and Local Government Finance (Police) Report (Wales). This includes the Metropolitan Police special payment, and the effects of floors and ceilings.
	2Figures for the City of London relate to Home Office Grant only as calculated in the Police Grant Report (England and Wales). Revenue Support Grant is allocated to the Common Council of the City of London as a whole in respect of all its functions. The City is grouped with education authorities for the purposes of floors and ceilings.
	3Welsh base positions are adjusted to account for the transfer of PFI funding out of RSG.
	
		Table 3: Specific grant allocations in 2005–06 compared with 2004–05
		
			  2004–05 2005–06   Variance 
			  £m £m £m % 
		
		
			 Crime Fighting Fund 279 217 -2 -0.7 
			 Counter Terrorism 84 96 12 14.3 
			 PNB Special Priority Payments 50 69 19 38.0 
			 London & SE Allowances   (incl Pay Lead & Travel) 52 58 6 11.5 
			 Basic Command Units 50 50 0 0 
			 Community Support Officers 41 50 9 21.9 
			 DNA 52 46 -6 -11.5 
			 Neighbourhood Policing   Fund 13 37 24 184.6 
			 Rural 30 30 0 0 
			 Airwave Grant—mainly Menu Costs 7 24 17 242.9 
			 Wales floor 14 14 0 0 
			 Street Crime 25 6 -18 -72.0 
			 Other 11 9 -2 -18.2 
			 Total specific grant 708 766 58 8.2

Paul Goggins: The Home Office has today published two online national statistics reports on reconviction rates, which are the basis for measuring progress against its 2002 public service agreement target, to reduce reoffending for young offenders and for adult offenders by 5 per cent. by 2005–06.
	The results are:
	for juveniles, a reduction in reconvictions of 4.5 per cent. for those dealt with in 2001 and 3.6 per cent. for 2002, both as compared to 2000;
	for adults, a 1.8 per cent. reduction for those starting a community sentence or discharged fromcustody in 2001, compared to 2000.
	Both of these are encouraging and demonstrate that we are on course to meet our PSA target.
	The juvenile report includes a correction of figures published in 2003 in Home Office Online Report 18/03. That report indicated that 2001 figures showed a 22.5   per cent.reduction in reconvictions compared to   1997. As a result of an internal review of the methodology for calculating "these figures, errors were identified and we commissioned an independent peer review, which confirmed the methodology used. The corrected figure for the fall in reconvictions between 1997 and 2001 is 7 per cent. Although lower than the previously published figure, this is nevertheless very significant progress.

Patricia Hewitt: A report on the review of the Agriculture and Environment Biotechnology Commission (AEBC) has been published today. The review has been conducted by an independent reviewer, Dr. Neil Williams, in line with the Cabinet Office guidance for reviewing non-departmental public bodies. Its main recommendation is that the AEBC should be wound up by the end of the current financial year.
	I, and ministerial colleagues involved in the funding of the AEBC, are grateful for this report. We accept the advice of the review committee, that the report should be published as soon as possible and with minimal comment from Ministers. We would like to express our thanks and support for work that the AEBC has carried out since its creation four years ago. We acknowledge the dedication of its members. The contribution of its chairman, Professor Malcolm Grant, has been key to everything the commission has so far achieved.
	We now intend to consider the recommendations of the independent review very carefully, and aim to reach a decision shortly. We will however ensure that we engage with stakeholders prior to making decisions on the future of the AEBC or a successor body.
	I have written to the Chairman of the AEBC asking the commission to continue to carry out their current work programme, but to bear in mind the review's recommendations.
	The Science and Technology Committee, the Environment, Food and Rural Affairs Committee and the Environmental Audit Committee have been sent copies of this report. It has also been sent to the Chair, Deputy Chair and Members of the AEBC, learned societies and other stakeholders and I have placed copies in the Libraries of both Houses. An electronic version of the report has been placed on the Office of Science and Technology website at: http://www.ost. gov.uk/policy/bodies/review.htm.